By: Qadeer Ahmed BS(CIS)2008-12
Nov 13, 2014
By: Qadeer AhmedBS(CIS)2008-12
Presentation Layout
• Definition• The nature of managerial decision making• Types of problems decision makers face• Differences in decision making situations• Models of decision making• Steps in an effective decision making process• Overcoming barriers to effective decision making• Managing diversity: group decision making• Summary and Conclusions
Definition
• The act of making up your mind about something, or a position or opinion or judgment reached after consideration.
• The process of selecting from several choices, products or ideas, and taking action.
Four Functions of Management
• An effective decision making includes following four steps
Four Functions of ManagementFour Functions of Management
PlanningChoose Goals
OrganizingWorking together
Leading Coordinate
ControllingMonitor & measure
1-8
Types of problems decision makers face
• Managerial decision making typically centers on three types of problems:Crisis
A crisis problem is a serious difficulty requiring immediate action.
Non-CrisisA non-crisis problem is an issue that requires resolution but does
not simultaneously have the importance and immediacy characteristics of a crisis.
Opportunity Problems.An opportunity problem is a situation that offers strong potential for
significant organizational gain if appropriate actions are taken.
Differences in decision making situations
• There are two situation Programmed Decision Making
Programmed Decisions are those made in routine, repetitive, well-structured situations through the use of predetermined decision rules.
Non-Programmed Decision Making
Non-programmed Decisions are those for which predetermined decision rules are impractical because the situations are novel and/or relatively ill structured.
Top Managers
Middle Managers
First-line Managers
Non-management
Three Levels of ManagementThree Levels of Management1-14
Three Levels of Management
Comparison of Decision making situation and management levels
Three Stages of the Planning ProcessThree Stages of the Planning ProcessDetermining the Organization’s
mission and goals(Define the business)
Strategy formulation(Analyze current situation &
develop strategies)
Strategy Implementation(Allocate resources & responsibilities
to achieve strategies)
Models of decision making
• Rational ModelMost popular type of modelBased around a cognitive judgment
Pros and cons of various options
• Non-Rational ModelsSatisficing ModelIncremental ModelGarbage-Can Model
Models of decision making cont….
• Satisficing Model Managers seek alternatives
One that looks satisfactory Not seeking the optimal decision.
• Incremental ModelManagers make the smallest response possible This reduce the problem to at least a tolerable
level.
Models of decision making cont….
• Garbage-Can Model Managers behave in virtually a random pattern
Steps in an effective decision making process
• Four steps for effective decision making
Overcoming barriers to effective decision making
• Means of overcoming D.M. barriersAccepting the problem challengeSearching for sufficient AlternativesRecognizing common Decision Making BiasesAvoiding the Decision Escalation Phenomenon
Managing diversity
• Group Decision MakingDecision Making by more than one personUsually followed in organizationsIt has some advantages and some disadvantages
Outlines
• Definition• The nature of managerial decision making• Types of problems decision makers face• Differences in decision making situations• Models of decision making• Steps in an effective decision making process• Overcoming barriers to effective decision
making• Managing diversity: group decision making
Summary and Conclusions
• Decision making is the process through which managers identify organizational problems and attempt to resolve them.
• There are three types of Problems Managers face• Situation differ in Decision Making Process• Managers follow different types of models during
decision making• Managing diversity
Questions????
Thanksfor your patience